What's New in Web3 Gaming? A Deep Dive
The Evolution of Web3 in Gaming
Web3 technologies have always held immense potential for revolutionizing the gaming world, offering perks like asset ownership, seamless interoperability, transparent gameplay, and rewarding token systems. However, the path to mainstream acceptance hasn't been entirely smooth. After the 2021 crypto boom, interest in Web3 and play-to-earn games skyrocketed, but soon faced backlash from traditional gamers citing poor gameplay quality and an overemphasis on NFTs.
Listening to the Feedback
The industry has clearly taken note of these concerns. A detailed report by Game7, a gaming DAO, released in December 2023, highlights a significant shift in the Web3 gaming landscape over the past couple of years. In 2021, the number of games launched far outstripped the support networks, with 29 games for every supporting network. By 2023, this ratio had dropped to 2.8 games per support network, indicating a strategic pivot towards building robust infrastructure rather than merely replacing Web2 games with Web3 versions.
A Strategic Shift
This shift marks a crucial change in how Web3 aims to establish a stable and successful niche within the global gaming industry. Web3 developers are now focusing on delivering the technological solutions that highlight the core benefits of these games rather than competing head-to-head with Web2 giants.
Evidence of Change
This strategic pivot is already evident in the types of projects being developed. The Game7 report noted a 65% drop in new Web3 game launches between 2022 and 2023, with significant activity now focused on infrastructure.
For example, Cronos is enhancing its appeal to game developers by integrating popular gaming engines like Unity and Unreal into its high-speed blockchain. Developers can continue using familiar programming languages like C++ and Blueprint, integrating Cronos with minimal code changes. The platform also leverages Crypto.com’s extensive services, including payment solutions and an NFT platform, making it easier for developers to transition to Web3.
Similarly, Oasys, backed by renowned publisher Ubisoft, is positioning itself as a competitor to platforms like Immutable. Oasys is building a dual-layered blockchain gaming platform, akin to a game console like Xbox but without the need for frequent hardware upgrades. The platform features a public EVM-compatible Layer 1 (The Hub) and an ultra-fast Layer 2 (The Verse), supporting games like Ubisoft’s upcoming fantasy RPG.
Bringing Web3 to Web2 Gaming
Some Web3 developments are more feature-based but still align with the broader trend of providing tools and services.
Azarus, recently acquired by Web3 gaming leader Animoca Brands, is a blockchain-based streaming platform that allows players to earn rewards from their broadcasts. Partnering with Twitch, Azarus adds an interactive layer for viewers, who can play games from brands like Logitech and Red Bull via a browser extension and earn rewards.
Smoothing the Transition from Web2 to Web3
Despite the shift towards infrastructure, the Web3 gaming market is far from obsolete. Newer titles, learning from past feedback, offer a more familiar Web2 experience while gradually introducing Web3 features. Games like MixMob and Upland are accessible via mainstream channels like Apple’s App Store and Google Play, offering rich gameplay without requiring immediate crypto knowledge.
In MixMob’s strategy card game, Racer 1, players use NFTs purchased in-game without needing external wallets. A dual-token system allows players to engage with in-game currency (SUD$) while also exploring Web3 features like secondary markets and governance tokens ($MXM) at their own pace.
Upland is an immersive virtual real estate trading game where players can buy and sell property, use virtual transport, and explore new areas. The first property is free, with new users receiving UPX tokens to start their journey. Upland also bridges Web2 and real-world audiences through partnerships like the one with KABOOM!, a non-profit building playgrounds in underserved neighborhoods. Upland created a special NFT collection of playgrounds, donating 90% of proceeds to KABOOM!.
Looking Ahead
Initiatives like these showcase the unique real-world activations and monetization opportunities in Web3 gaming, which traditional Web2 games have yet to explore. The Web3 sector has shown remarkable resilience, especially amid the challenging market conditions of late 2022 and 2023. Now, the industry’s focus on building robust infrastructure and strategic partnerships is starting to bear fruit, paving the way for a bright future in Web3 gaming.
